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17-Dec-2018   08:26 Hrs IST Benchmarks likely to make positive start <p align="justify">Indian markets ended Friday's choppy trading session slightly in green, amid negative signals from other Asian markets, and mixed macro cues like weakening rupee and easing crude prices. Today, the markets are likely to make optimistic start amid positive regional cues. The commerce ministry's latest data showed that India's exports grew by a meager 0.80% to $26.5 billion in November, even as the trade deficit widened to $16.67 billion. Exporters attributed the marginal export growth in November to high base effect, as the foreign shipments in the comparable month of the previous fiscal were quite high at $26.29 billion. Besides, imports rose by 4.31% to $43.17 billion during the month. Traders will be getting some encouragement with Finance Minister Arun Jaitley's statement that the government will stick to the 3.3% fiscal deficit target in the current financial year. He also said India will clock a growth rate of 7-8% despite global uncertainties and will retain the tag of the world's fastest-growing major economy. Traders also may take note of the Reserve Bank of India (RBI) data showing the country's foreign exchange reserves increased by $16.6 million to $393.734 billion in the week to December 7, mainly due to a rise in foreign currency assets. However, there may be some cautiousness with a private report indicating that weakening exports, rising crude prices and a stronger US dollar are pulling down rupee even as foreign portfolio investor (FPI) inflows into the stock markets have seen some uptick in recent times. Meanwhile, Economic Affairs Secretary Subhash Chandra Garg said the Indian economy has a large overhang of public debt and there is a need to focus on reducing this in the next 4-5 years. There will be some buzz in the&nbsp; hospitality industry related stocks with Icra's report that the hospitality industry is expected to grow annually by 9-10% over the next four years, mainly due to robust domestic demand and a muted supply pipeline.</p><p align="justify">The US markets settled in red territory on Friday amid renewed concerns about the outlook for global economic growth following the release of data showing disappointing industrial output and retail sales growth in China. Asian markets were trading mixed on Monday after weak economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the impact of international trade frictions on business and profits.</p><p align="justify">Back home, benchmark indices experienced volatility on the last trading day of the week but managed to end higher, amid easing wholesale price index (WPI) inflation data. WPI slowed down to 4.64% in November from 5.28% in October. Build up inflation rate in the financial year so far was 4.73% compared to a build up rate of 2.83% in the corresponding period of the previous year. The markets started on weak note, as anxiety spread among traders, with SBI Research's report stating that Modi government may announce a holistic or selective farm loan waiver, however, it could be the ‘worst solution' to alleviate farmers' distress. Adding more anxiety, global credit ratings agency Moody said that liquidity constraints faced by some non-bank financial institutions (NBFIs) will likely tighten overall credit supply and slow India's economic growth rate to just above 7% for the fiscal 2019 and 2020. In addition, any further distress in the Indian NBFI sector will pose significant downside risks to India's growth outlook. The key indices fluctuated in green and red terrain during the whole trading session, impacted by Former Reserve Bank of India (RBI) governor Raghuram Rajan's statement that the Indian economy is not creating enough jobs and that growth is not benefiting everyone. Traders took note of Former Chief Economic Advisor Arvind Subramanian's statement that the RBI is adequately capitalised, but the money should be used for fixing the financial system, not for financial deficit or financing government expenditure. Separately, the International Monetary Fund said that operational independence of central banks like the RBI was important for carrying out their responsibilities. But, the end of day was positive, despite weak cues from global markets. The traders took support with Export-Import (Exim) Bank report that India's merchandise shipments are expected to rise by 7% to $82.39 billion during the third quarter this fiscal. Non-oil exports are projected to increase by 7.2% to $71.45 billion. Finally, the BSE Sensex surged 33.29 points or 0.09% to 35,962.93, while the CNX Nifty was up by 13.90 points or 0.13% to 10,805.45.<br></p>
14-Dec-2018   08:18 Hrs IST Markets to make negative start; RBI board meeting eyed <p align="justify">Indian markets extended their gains for third straight session on Thursday on the back of strong macro data and supportive global cues. Besides, heavy buying in capital goods, consumer durables, realty and FMCG stocks too boosted the sentiments. Today, the markets are likely to make negative start amid weak global cues on economic growth concerns. Investors will be looking ahead for cues from the Reserve Bank of India (RBI) board meeting later in the day. The central board of the RBI under new Governor Shaktikanta Das will meet on December 14 where the directors are likely to push for greater say in the decision making of the central bank. Traders will also be eyeing another macro data of wholesale price inflation for November scheduled to be release later in the day. Traders will be concerned about global credit ratings agency Moody's statement that liquidity constraints faced by some non-bank financial institutions (NBFIs) will likely tighten overall credit supply and slow India's economic growth rate to just above 7% for the fiscal 2019 and 2020. In addition, any further distress in the Indian NBFI sector will pose significant downside risks to India's growth outlook. Traders may take note of Finance Minister Arun Jaitley's statement that need to double the size of the economy in next few years. He said ‘we are globally no longer in the high growth economic era which we saw between 2003-08; to achieve 9%, we need global tailwinds and extraordinary domestic growth story'. He added that trade wars, hardening dollar and fluctuating oil create uncertainty. Meanwhile, NITI Aayog chief executive Amitabh Kant said that India's exports need to increase significantly if the country has to become a $5-trillion economy by 2025. Kant also noted that the private sector will play a major role in pushing the country's economy towards the ambitious $5-trillion target. There will be some buzz in the public sector banking stocks with report that the government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets. Also, there will be some reaction in cement sector stocks with report that the Goods and Services Tax (GST) Council is likely to rationalise the 28% slab by cutting tax rates on construction items, like cement, in its meeting next week. </p><p align="justify">The US markets end mostly lower on Thursday as concerns about a creeping economic slowdown weighted on investor sentiments. Asian markets were trading in red on Friday as caution returned and the recent recovery in equities showed signs of losing steam. <br></p><p align="justify"></p><p align="justify">Back home, positive macroeconomic data gave enough support to the Indian equity benchmarks on Thursday, as Sensex and Nifty settled higher over 150 and 50 points, respectively. The markets made an awesome start, after India's industrial production measured by Index of Industrial Production (IIP) surged to 11-month high of 8.1% in the month of October 2018 as against 4.5% in September 2018 and 1.8 percent in October 2017. The trade also remained strong, on the back of easing inflation data. India's retail inflation based on Consumer Price Index (CPI) cooled down to a 17-month low of 2.33% in the month of November 2018, as compared to 4.88% in the same month of previous year. The inflation softened mainly on account of decline in prices of kitchen essentials like vegetables, eggs and pulses. Meanwhile, Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta urged newly-appointed the Reserve Bank of India (RBI) Governor Shaktikanta Das to ensure smooth flow of credit to exports sector which is falling sharply on year on year basis, affecting the liquidity of exporters particularly the micro, small, and medium enterprises (MSMEs). However, in the last hours of the trading session, the markets trim some of their losses to come off their day's high points. The street got cautious with World Economic Forum (WEF) founder and executive chairman Klaus Schwab's statement that India is still in the ‘middle class' in ease of doing business and the country should work towards creating the necessary ecosystem to boost entrepreneurship. Adding some anxiety among investors, as many as 358 infrastructure projects worth Rs 150 or above, entailing a total investment of Rs 3.53 lakh crore, reported cost overruns as on August 1, 2018. The street took note of DIPP Secretary Ramesh Abhishek's statement that the government has no proposal to change the existing foreign direct investment (FDI) policy in the multi-brand retail trading sector. But, the indices again rallied to end the day with the notable gains, with taking support from S&amp;P Global's statement that India's rapid economic growth will be enough to offset worries about the independence of its central bank and keep its credit rating in the coveted investment grade bracket. Finally, the BSE Sensex surged 150.57 points or 0.42% to 35.929.64, while the CNX Nifty was up by 53.95 points or 0.50% to 10,791.55.<br></p>
13-Dec-2018   08:24 Hrs IST Markets likely to open in green on positive macro data
12-Dec-2018   08:26 Hrs IST Markets to make cautious start; macro-economic data eyed
11-Dec-2018   08:34 Hrs IST Markets to extend weak trade for second consecutive session
10-Dec-2018   08:27 Hrs IST Benchmarks likely to make gap-down opening on Monday
07-Dec-2018   08:40 Hrs IST Benchmarks likely to make positive start
06-Dec-2018   08:37 Hrs IST Markets to make gap-down opening on Thursday
05-Dec-2018   08:35 Hrs IST Markets to make weak start; RBI monetary policy outcome eyed
04-Dec-2018   08:26 Hrs IST Benchmarks to make a mildly soft start on Tuesday

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